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Refusal of customer to pay outstanding invoice

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12 years 11 months ago #565 by shellbrown7
Hi we are a small Heating & Plumbing Company.

We are currently in dispute with a Private Domestic Customer who is refusing to pay her invoice.

Can we apply the late payment legislation act on a Domestic Contract?

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12 years 11 months ago #566 by David J
Hello Michelle

The late payment of commercial debts (interest) act is for commercial debts only I'm afraid. Therefore it cannot be used against individuals.

Regards

David

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12 years 11 months ago #567 by shellbrown7
Hi David
Thanks for your email.

Since Posting my question to you this afternoon I contacted my Accountant and asked the same question.

He said that we could apply the Act to a Domestic Customer so I am somewhat confused??

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12 years 11 months ago #568 by David J
Hi again Michelle
Yes that would cause confusion.
The first paragraph of the users guide states: In November 1998, the UK Government introduced legislation to give businesses a statutory right to claim interest from other businesses for the late payment of commercial debt. The UK was one of the first countries in the EU to introduce late payment legislation to help promote a culture of prompt payment.
If your customer is an individual, then this act would not apply.

Perhaps your accountant is think of another act.

Regards

David

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12 years 11 months ago #587 by pre-legal
For consumer disputes and debt the legislation you should be using is the "debt pre-action protocol" and its "Civil Procedure Rules (CPR)".

May I suggest you visit the information site pre-actionADR.org.uk to find out more about using this pre-action protocol legislation.

Justin Lievesley - Pre-legal.com Ltd. ... settling debt claims, resolving disputes, providing access to justice

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